While most eyes are on Bitcoin and Ethereum, given their own particular tailwinds, Solana is stealing up on the rails, making large dollar gains, as well as outperforming $BTC and $ETH. Is this a sign of what is to come from $SOL for the rest of this bull market?
Among the top 20 ranked cryptocurrencies by market capitalization, Solana is leading the field for 7-day gains, 19.3% up on the week. Only Avalanche has done better, with 20.5%. However, the $SOL gains over the entirety of this bull market are well in excess of those of $AVAX.
$SOL price increases by one third in a month
Source: TradingView
On the daily chart for $SOL, it can be seen how the price has pierced through the top trend line of the triangle. Important resistance has now been flipped into support, but it may be that the price comes back to either the $174 or $168 level in order to retest these levels.
As things stand, the price is currently at $180, which is also support. From the beginning of July, the $SOL price has increased by more than a third, putting on 53% from this time.
$SOL outperforms its $BTC pairing
Source: TradingView
Against $BTC, the $SOL price is continuing its upward trend. That said, the SOL/BTC pair is in a sideways range. It can be seen that this latest trend toward the top of the range began with a bounce off of the 0.618 fibonacci.
In addition, the breakthrough of the downward trend line took place exactly at the confluence of the range mid-point. It might be expected that $SOL continues to outperform $BTC, at least until it reaches the top of the range.
$SOL continues to reel in $ETH
Source: TradingView
For the SOL/ETH pair it is a similar story. Since 24 June $SOL has managed a 40% gain over $ETH. Once again, the midway point of the range is where the main action has taken place for this pair. A breakthrough for $SOL of this level potentially gives the price the opportunity to rise to the top of the range.
Ethereum has a market cap which is 5x that of Solana right now. If $SOL can break this range, the potential for drastically further eating into the $ETH lead is a real possibility. Can $SOL catch up and flip $ETH? This is possible, but more likely to happen in the next bull market. Watch this space.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.